Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Federal Agency:

U.S. Department of Education

Federal Program:

Rehabilitation Services – Vocational Rehabilitation Grants to States (84.126)

Federal Award Numbers:

H126A170048

Federal Award Years:

2017

State Agency:

Office of Children and Family Services

Reference:

2018-014

Criteria Title 29 U.S. Code Part 723 (29 USC 723), Vocational rehabilitation services , section 723(a) states that services provided under this subchapter are any services described in an individualized plan for employment necessary to assist an individual with a disability in preparing for, securing, retaining, or regaining an employment outcome that is consistent with the strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of the individual including criteria identified within 29 USC 723(a)(1) through 29 USC 723(a)(20). Additionally, Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements , section 200.303, states the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition The Office of Children and Family Services’ (the Office) management review control did not operate at a level of precision sufficient to ensure expenditures charged to the federal program were accurate and incurred for the purpose of the federal program. For 2 of 65 participant expenditures selected, management improperly requested Federal reimbursement for costs not spent in accordance with the Rehabilitation Services – Vocational Rehabilitation Grants to States (Voc Rehab) program requirements. Cause The condition found was primarily caused by incorrectly coding of expenditures to the Voc Rehab program, rather than to the Independent Living and Children’s program. Management’s review of expenditures incurred by the federal program was not at a level of precision to detect the error in coding prior to the close of the State fiscal year. Possible Asserted Effect Failure to adequately review expenditures charged to the federal programs for coding purposes may result in federal funds being utilized for purposes that are not allowable as defined by the laws, regulations, and terms and conditions of the grant agreements of the Federal program.

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